NORFOLK, Va. — Dominion Energy customers in Virginia will pay an average of nearly $15 more on electricity bills after Virginia regulators approved a fuel rate increase Friday.
The increased rate — which covers fuel used to generate electricity and costs associated with power purchased by Dominion — was needed because of an expected rise in fuel costs between July 1, 2022, and June 30, 2023, according to an order from the Virginia State Corporation Commission (SCC).
As a result, a residential customer using 1,000 kilowatt-hours of electricity each month could see their average monthly bill go up by an average of $14.93, the SCC said.
The rate increase took effect on an interim basis on July 1, but the SCC's order made it official as Virginians struggle to cope with elevated gas prices and inflation.
On Monday, AAA Hampton Roads estimated that average gas prices in Virginia fell to $3.40, which is $1.46 lower than the highest state average of $4.86 seen on June 14.
Despite the recent decline, gas prices are still higher than the $2.98 seen a year ago.
"We are sensitive to the effects of rate increases, especially in times such as these," the SCC wrote in its order. "The Commission, however, must follow the laws applicable to this case, as well as the findings of fact supported by the evidence in the record. This is what we have done herein.”